Zinc: Opportunity for bears
MCX Zinc faced resistance at a crucial hurdle ie the long term falling trendline. Since then it has started a journey towards south. On the way down it has formed a five wave decline and is forming retracement of the same. It is currently near the 50% retracement mark and can move till the 61.8% retracement mark (Rs106.5). By such time, the daily momentum indicator is expected to complete the pullback cycle. Thus the strategy will be to sell on a rise with a reversal of Rs107.6 (78.6% retracement mark). The targets on the downside are Rs102.6 (swing low) – Rs98.3 (lower end of the short term channel).